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A partnership has accounts receivable with a basis of $0 and a fair market value...

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Accounting

A partnership has accounts receivable with a basis of $0 and a fair market value of $30,000, and depreciation recapture potential of $20,000. All other assets of the partnership are either cash, capital assets, or section 1231 assets. If a purchaser acquires a 40% interest in the partnership from another partner, the selling partner will be required to recognize ordinary income of $12,000. TRUE OR FALSE

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